Investing.com – Shares of Thyssenkrupp AG (ETR:) fell on Wednesday after the steelmaker reported disappointing third-quarter results.
At 3:24 a.m. (0724 GMT), Thyssenkrupp was trading 2.4% lower at €3.215.
The company, which has already cut forecasts three times in recent months, reported a decline in new orders and sales.
Thyssenkrupp’s order intake fell by almost 11% to €8.4 billion for the three months ended June 30. The slowdown in key sectors such as automotive technology, machinery and construction has impacted the company’s performance.
Quarterly net loss amounted to €33 million, reflecting ongoing challenges in the market. The company has revised its forecasts and now expects a net loss and negative free cash flow for fiscal 2024.
Weak demand and high energy costs are expected to persist, with no immediate stabilization in sight. Investor confidence in Germany, Thyssenkrupp’s main market, has plummeted, reflecting the broader pessimistic outlook for the global economy.
“We are updating our estimates for the third quarter 2023/24 results published earlier today. This set of results demonstrated commercial and operational strength in both divisions, helping to differentiate Nucera from most competitors in a challenging environment for electrolyser manufacturers,” RBC Capital Markets analysts said in a note.
The company has also halted its efforts to sell its Automation Engineering unit, focusing instead on potential structural changes to its powertrain business. A decision on this is expected by the end of the current financial year.
In addition, Thyssenkrupp plans to cut 400 positions in Germany, mainly in the automotive chassis division, while increasing capacity outside Germany.
Thyssenkrupp’s ongoing efforts to restructure its loss-making steel division are facing delays. Despite reaching an agreement in May to sell a 20% stake in Thyssenkrupp Steel Europe AG to Czech billionaire Daniel Kretinsky’s EP Corporate Group, progress on job cuts and capacity cuts has stalled.
Disagreements over funding needs and an unresolved board of trustees meeting last week, marked by worker protests, have further complicated the situation.
